GLOBAL CRISIS, TENSE POLITICAL SITUATION HIT ARMENIA’S MORTGAGE MARKET
ARKA
Dec 29, 2008
YEREVAN, December 29. /ARKA/. The global financial crisis, the tense
political situation in Armenia and the Georgian war hit the country’s
mortgage market in 2008, said Manuk Vardanyan, chairman of the RA
State Committee of Real Estate Cadastre (SCREC).
"The mortgage market is sensitive and any political process and
global developments influence the mortgage market," Vardanyan said,
adding 2008 was a hard year for Armenia. "The presidential election
in Armenia, the post-election conflict, the global financial crisis
and the war in our neighbor country have hit the local mortgage market
hard," he continued.
According to the SCREC chairman, prices of property alienation deals
hit a ten-year low in 2008. The local mortgage market has seen a
setback since August 2008, with 35% of total transactions being
effected in Yerevan, compared to 45% in the same period last year.
"This does not mean invigoration of mortgage business in Armenia’s
regions," Vardanyan said, pointing out a considerable decline in
property business in Yerevan.
At the same time, the SCREC chairman said Armenia did not see a
decrease in property transactions this year, with 160,000 deals being
made this year, compared to 155,000 in 2007.